SOURCE: Drake Gold Resources, Inc.

July 10, 2007 18:56 ET

Drake Gold Resources: Management Change and Corporate Update

Drake Gold Resources Is Implementing a Number of Changes and Enhancements Including Additional Projects and Management Changes

SCOTTSDALE, AZ--(Marketwire - July 10, 2007) - Drake Gold Resources (PINKSHEETS: DKGR) is in the midst of implementing a broad set of changes to the company's architecture. "My role was really to prepare the company structurally. Now it's the turn of the natural resource recovery experts to carry these enhancements forward," Clayton Smith Interim CEO stated in regard to management changes and his stepping aside. The enhancements Mr. Smith refers to are changes in three key business areas: Mining, Oil and Gas, and Management.


The Jackpot Placer project has evolved over the past months into a comprehensive metals mining project. Preliminary samples have revealed not only gold but also other metals such as copper and silver. This development has been the motivation for funding a broader full-scale sampling program which will focus on the potential for other revenue producing metals to augment overall project profitability. The company is driven to realize all of the possible assets in a given amount of paydirt. An aggressive sampling program will be the only way to quantify the makeup of each of the identified precious metals. A timetable will be released to compliment the program.

Other projects that are currently being considered include the Dragoon Property, per the directive of previous management. This is not to say that expansions will be limited to eastern Arizona. A slate of properties are in various stages of development. These will include properties in Canada and other areas that for competitive reasons must remain unnamed. All new and current projects will be subject to internal review by incoming management.


As the Drake Oil and Gas entity develops, the company is taking steps to deliver on its promised dividend of 30 million shares to be divided equally by company shareholders. Delays were caused by a circumstance that involved the unauthorized issuance of stock. Subsequently, this stock has been recovered and thereby cancelled resulting in an outstanding share decrease of more then 60 million shares. Although inconvenient it was important that these shares be addressed so that a full accounting and equitable distribution be made to those investors of record who held fully authorized shares.

As this issue has been fully resolved Drake Gold Resources is now free to structure the new company and progress with project development unencumbered. With this resolution, management has proceeded to construct projects that will contribute to this new entity and create value for both the parent company and its shareholders. As these projects come to fruition, announcements will be made as strategy dictates.


The company has come far since Clayton Smith stepped in as interim CEO and President. With his leadership Drake Gold Resources has removed all major debt and a host of nagging concerns. Now it is important to recognize that with the resignation of Clayton Smith, Drake Gold Resources is moving from an internal structurally focused organization to a more outward project driven orientation. "I believe it was important for Drake to develop as an organization before undergoing this transformation," John Marconette, member of the board of directors said. DKGR will release information in the near term regarding newly appointed officers, directors, and advisory teams as well as a detailed look into the business model as it becomes available.


Drake Gold Resources Inc. is an early-stage mining and energy company that focuses on the exploration and production of precious metals and energy, such as petroleum and coal. Several projects have been identified in North America. Announcements will be made as agreements are completed.

DKGR intends to be a diversified company by operating in the natural resource, petroleum, and alternative energy markets. As a result of ever-increasing scarcity, the market for natural resources is clamoring for diversification and innovative exploration tactics. Potential opportunities for diversification include gold, silver and other minerals. DKGR also plans to capitalize on current and long-term trends in energy prices to operate in the petroleum and alternative energy markets.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks. Based upon industry standards Drake would be considered highly speculative. Additional risks you should consider, this list is limited and additional risk not mentioned may apply: failure to meet Drake's financial and contractual obligations, Drake's managerial errors made based upon the Company's limited experience and knowledge of the industry, commodity risk, acts of God and regulatory risk. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.

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